Monday, 15 June 2015

The trouble for Deutsche Bank is that it’s conventional retail
banking operations are not a significant profit center. To maintain
margins, Deutsche Bank has been forced into riskier asset classes than
it’s peers.
Deutsche Bank is sitting on more than $75 Trillion in derivatives
bets — an amount that is twenty times greater than German GDP. Their
derivatives exposure dwarfs even JP Morgan’s exposure – by a staggering $5 trillion.
With that kind of exposure, relatively small moves can precipitate
catastrophic losses. Again, we must note that Greece just missed it’s
payment to the IMF – and further defaults are most certainly not beyond
the realm of possibility.

And if the dominos were not adequately stacked already, there is one final domino which perfects the setup.
Meet Tom Humphrey. He heads up Deutsche Bank’s Investment Banking operations on Wall Street.
He was also head of fixed income at Lehman."